Hi Jeroboem.
They raised $1.6 million from the placement according to announcement on 14/10/15. See detail below.
I have an opinion re consolidation. Well I have opinions on most things, unfortunately but definitely one on this.
Consolidation is inevitable at some point because we're getting a large register and many people are irrationally averse to big numbers of shares on issue. In my experience, having seen many such scenarios in the last 17+ years I've been following speccies, junior explorers almost always get this wrong.
The usual argument put for consolidation is that it gets a higher price ticket on the stock and that makes it easier to raise money and push the price higher by taking it out of the penny dreadful stage. That is rarely what actually happens. Firstly smart capital doesn't primarily care about the share price, they care about the quality of project and management. If those are good enough they will invest. The share price argument is more about the small retail shareholder.
Secondly when you consolidate the share price you open up new basement territory. Eg we are trading at 0.5 cents. If we consolidate 20 fold that moves to 10 cents. Looks much better right? However the bottom potential price is 0.1 cents in the former scenario is equal to 2 cents in the latter and of course the latter still has a potential 0.1 cents in the worst case long run. So generally what happens is that a consolidation takes place and the spec continues it's down trend with the ability to go lower, relatively, than it did previously. I contend it would be easier for STA, in current circumstances to trade at say 4 cents consolidated then 0.2 cents unconsolidated.
In my strong opinion the only time for a junior spec to seriously contemplate consolidation is when there is very strong reason to believe that a long uptrend is in place. The only other condition for me is when the shares on offer gets just too ridiculous and cost of management of register is silly, even then it should be a course taken slowly. Otherwise I am resistant to the idea of STA consolidating now - ideally it should not take place until they have proven they have quality resources, that the mineral sands price crash has clearly turned and there is a clear plan to add value whether a sensible plan to develop mining/production or another strategy such as a potential buyout.
STRANDLINE RAISES $1.6M TO PROGRESS TANZANIAN PORTFOLIO
Highlights
$1.6M raised to accelerate drilling programs in Tanzania;
Drilling commences in two weeks; and
In combining forces with Jacana Resources, Strandline has now secured one of the last underexplored pieces of the East African mineral sands producing corridor, a corridor which boasts over 10 major operating mineral sands mines and deposits.
Strandline Resources Limited (“Strandline”, or the “Company”) is pleased to advise that following completion of the acquisition of Jacana Resources (Tanzania) Limited as announced last Friday, it has received binding commitments from sophisticated and professional investors to subscribe for a total of $1.6 million in a placement to issue up to approximately 229 million new shares and 114.5 million new options (“Placement”).
(20min delay)